HC2 Stock Tumbles After Q1 Earnings Miss, Decline In Spectrum Revenue

HC2 Holdings Inc HCHC reported a first-quarter FY21 revenue decline of 7.9% year-on-year to $171.8 million, missing the analyst consensus of $248.1 million.
Infrastructure revenue declined 8.6% Y/Y to $161.3 million, and Spectrum revenue rose 4% Y/Y to $10.5 million.
Non-GAAP EPS loss of ($0.35) missed the analyst consensus of ($0.20) loss.
Adjusted EBITDA rose 134.5% Y/Y to $1 million.
HC2 held $54.2 million in cash and equivalents.
With the completed sale of the Clean Energy segment and the pending sale of the Insurance segment, HC2 was coalescing around three key strategic assets: Infrastructure, Life Sciences, and Spectrum, CEO Wayne Barr, Jr said.
The successful debt refinancing in February put the company on a stronger financial footing that provided with the flexibility and runway to execute the strategic plan and drive meaningful growth and value creation in the years ahead, Barr added.
In Infrastructure, DBM was rebuilding its backlog and pipeline while working on completing the acquisition of Banker Steel. In Life Sciences, R2 officially launched Glacial Rx commercially in the U.S. In Spectrum, HC2 posted the second consecutive quarter of positive Adjusted EBITDA, completed the relocation of media gateway from Little Rock to a Tier 3 data center in Miami, and was airing 80 content networks on its platform and laying the groundwork for the construction of 17 new stations.
Price action: HCHC shares traded lower by 8.6% at $3.77 on the last check Friday.